Advanced Options Trading

Advanced Option Trading Strategies

This section aims to explain the complexities of advanced options trading, we present the different strategies and how adopting these strategies may benefit your trading style and provide further insight.

Once you have a good understanding of basic and intermediate options, it’s time to take a look at the Greeks.

Many clients neglect the effect of Greeks exposure even though they play a big part in advanced options trading.

Understanding the risks involved before you start trading is very important, as losses in some strategies can be greater than your initial investment. Understanding these concepts can be the difference between profit and loss.

In these pages we have tried to demystify some of the advanced options trading strategies and terms to help you harness the power of options, but please don’t hesitate to call us if you’d like to understand more about how these tools can be applied to your specific investment and trading goals.

21 July 2021

The Options Greeks

Option Greeks essentially are measures of various sensitivities of an option’s price. They measure different factors that will affect the price of an option and will help you understand what is going on at a deeper level.

21 July 2021

The Greeks – Delta

Delta measures the sensitivity of an option price in relation to its underlying asset price. Put simply, it’s how much an option's price is expected to change per 1 unit change in the price of the underlying asset.

Moving Forwards with Advanced Options Trading

Now that we have covered the key elements of advanced advanced options trading it’s time to move onwards and jump into the other advanced options trading strategies, each article has been carefully designed by our options trading experts to give you a wider understanding of advanced options, by utilising these core elements you can begin to tailor your outlook on the market and implement strategies that work for you.

21 July 2021

The Greeks – Gamma

Gamma is the expected change of an option’s delta given a 1 unit move in the underlying asset price. It is expressed as a percentage and like the delta, it is constantly changing with every point move of the underlying asset.

21 July 2021

The Greeks – Theta

Theta is one of the most important concepts for an options trader to understand because it explains the effect of time on the premium of options purchased or sold.

A man working at a desk on a mobile phone with a laptop in front of him.

Ready to Start Trading?

Open an Account Or Get In Touch With Our Brokers

Options and the other financial products that we offer are powerful financial instruments that can help you protect your existing investments as well as earn additional income. Options also offer leverage with a clearly defined risk profile; and the ability to position yourself for specific events and opportunities within an expressed period of time.

THE OPTIONS DESK STRATEGY EXPLORER

EXPLORE STRATEGIES THAT CAN EMPOWER YOU.

Our free online tool provides a personalised way to identify which strategies are most appropriate for your experience, risk appetite, and investment objective.

News & Insights

Inflation Data: The Tipping Point for U.S. Stocks? U.S. equity investors will be closely watching the upcoming inflation figures this week, the outcome could shape the trajectory of the stock rally that has shown signs of faltering Read more

Decoding NVDA Earnings: What to Expect on Wednesday As the financial world gears up for another earnings season, tech enthusiasts and investors are eagerly awaiting the earnings report from NVIDIA Corporation (NVDA), one of the leading players in Read more

Fitch’s Downgrade of U.S. Credit Rating Sparks Market Uncertainty Fitch announced on Tuesday that it was reducing the U.S. credit rating from AAA to AA+, prompted by factors such as predicted fiscal deterioration over the forthcoming three-year Read more

Consumer Duty sets higher standards for financial services customers The new rules, known as the Consumer Duty, set a higher standard of consumer protection in financial services. Read more

Anticipating Apple’s Earnings: Protection and Opportunities Apple is scheduled to announce its quarterly financial results this week. The tech behemoth has seen a remarkable uptick in its stock, with an almost 50% surge in value just Read more